Four factors that typically influence the dollar’s direction have shifted from bullish to bearish since the onset of the coronavirus crisis:
1) FOMC has shifted to a zero-rate policy
• US interest rates (adjusted for inflation) are negative
• Growth expectations have slowed while inflation expectations have risen… sending Real Interest Rates down
The global juncture is US$ favourable.
Countries around the world have sold significant amounts of sovereign debt denominated in US$, Now facing deteriorating economies, these countries will find it increasingly difficult to repay their debts. US$ hoarding is the name of the game.
By end 2020 we should have a complete wind down of technicals and, perhaps, even a...
The whole rally the past few weeks seems attributable to the decline in the dollar. And it doesn't look good with a giant descending triangle. However, here we seem to have found some gentle support on the bottom end of the bollinger band. Looking for a very short term (3-7 days) bounce here commensurate with an SPX drop. 25.5 seems like the obvious exit...
Part of the recent rally in SPX could be attributed to the declining dollar. It looks like today we have bounced off a support line and are constricted with a downtrend line. In conjunction with the selloff today I expect there to be an increase in demand for dollars. So I am looking for a move perhaps to 25.50-25.75.
when the hell is this rocket gonna take off?
the fed bozooka keeps ckblocking this rise...
the sooner this rises the sooner it will crush the markets... that is how these these charts are forecasting...
Not trading or investing advice!
Risk Reward: 3/1
My trade idea is to buy the breakout of the inverted head and shoulders and sell at the target. Use 2 year moving average/ lowest close of right shoulder for an asymmetrical risk reward stop, or use the bottom of the right shoulder wick for a more conservative but less...
USD is the world reserve currency, it tends to outperform most other currencies during a liquidity crisis like we have been seeing the last few days. If the market keeps crashing and things keep going in that direction, expect USD to keep pumping.
My strategy to tackle this move: calls on UUP, march 27th expiry (high-risk, high-reward), strike price $28 USD